Post navigation

The Trouble With Meltups

The trouble with low-volume meltups driven entirely by algos is that they lack a strong foundation. So, troubling economic, political or military news often unwind them — after hours, of course. Such was the case with yesterday’s melt-up.

USDJPY dutifully ramped back above the SMA200. And, WTI studiously avoided completing a bearish H&S Pattern. VIX, of course, shed over 8% intraday — just because. It was enough to run some stops and put bears on edge. But, it wasn’t enough to break the negative trend that’s pervaded since the 2400 top.